French lawmakers have narrowly approved a tax amendment that could make converting cryptocurrencies into stablecoins a taxable event starting in 2027, while additional measures — including an exit tax on unrealized gains and reporting requirements for self-custodial wallets — remain under consideration.

France's National Assembly adopted Amendment I-3898 on Friday, with 38 votes in favor, 37 against and 25 abstentions, according to the Assembly's public voting record. The measure was initially introduced as committee amendment I-CF1826 by French MP Nicolas Sansu and adopted on Oct. 7; the amendment text is published on the Assembly's website.

Under the proposal, investors converting Bitcoin (BTC) or other cryptocurrencies into stablecoins would trigger a tax on the gains, even if the proceeds are never converted into fiat currency. Stablecoins are crypto assets designed to track the value of a reference asset, most often a fiat currency such as the U.S. dollar or the euro. For affected investors, the taxable gain would be calculated using the acquisition cost of the sold crypto asset and the weighted average purchasing price.

The amendment's adoption came as the budget's legislative timetable shifted. On Monday, the Assembly postponed its vote on the first part of the 2027 Finance Bill — the revenue section of the 2027 state budget — which had been scheduled for Tuesday. Other crypto-related proposals remain under consideration.

Separately, the Assembly on Friday rejected a proposal that would have allowed realized crypto losses to be carried forward for 10 years, with 18 votes in favor, 75 against and 3 abstentions, per the Assembly's voting record.

Exit tax and self-custodial wallet reporting proposals

Lawmakers are preparing to debate further crypto-related measures as part of next year's budget. Amendment I-CF1822 proposes to extend France's exit tax regime to cover unrealized gains when taxpayers with aggregate crypto portfolio values exceeding €800,000 ($895,000) transfer their residence abroad — a provision that would apply only to holders who both cross the portfolio threshold and relocate.

Lawmakers are also weighing amendment I-2701, which would require individuals to declare the holdings of their self-custodial wallets if their total value exceeded €100,000 ($112,000) in the relevant tax year. Self-custodial wallets are crypto addresses whose private keys are controlled by their owners rather than by an exchange or other custodian, and unlike the exit tax proposal, the reporting obligation would hinge on wallet value alone rather than on relocation.

As of Monday, both the exit tax and self-custodial wallet reporting proposals remained under consideration for the 2027 Finance Bill. The rescheduling of the postponed revenue vote and the Assembly's handling of these amendments remain the key next steps as the budget moves through Parliament.

This article is based on Cointelegraph's original report.